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Mr Lim Hng Kiang at the Groundbreaking of the Pit Building for Formula 1 Singapore Grand Prix

Mr Lim Hng Kiang at the Groundbreaking of the Pit Building for Formula 1 Singapore Grand Prix

SPEECH BY MR LIM HNG KIANG, MINISTER FOR TRADE AND INDUSTRY, AT THE GROUNDBREAKING OF THE PITBUILDING FOR FORMULA 1 SINGAPORE GRAND PRIX, FRIDAY, 31 AUGUST 2007, 10.00 AM

Distinguished guests,

Ladies and gentlemen

I am very pleased to join you here today to mark an important milestone in the run-up to Singapore’s hosting of the Formula 1 Singapore Grand Prix for the first time next year.

About three months ago, on 11 May, Mr Ong Beng Seng’s Singapore Grand Prix Pte Ltd won the rights to stage one leg of the Formula 1 World Championships in Singapore, starting from next year. With a global viewership of 500 million and a strong fan base worldwide, the F1 race is a world-class event that will help to inject buzz and vibrancy to Singapore and enhance our appeal as a top-of-mind destination. Since then, the race promoter and various Government agencies have been running our own race, as we prepare Singapore to play host to the third most-watched event in the world after the Olympics and the World Cup.The working teams face the daunting task of building 20 per cent of the circuit and this Pit building from ground up. But Singapore is a City of Possibilities, so I have full confidence we will be ready for the 28 September 2008 race date.

F1 Benefits to Economy

The F1 Singapore Grand Prix will be a mega event, which is expected to generate incremental tourism receipts of about S$100 million a year and attract an annual turnout of over 80,000 spectators, a large proportion of whom are expected to be visitors.Various sectors of the economy will benefit from the staging of the race and increased visitorship, ranging from hotels, restaurants and airlines to retail and entertainment outlets.In addition, F1 is not just a sporting event. More importantly, it is a huge leisure event that enthralls more than just motorsport enthusiasts.Our growing private wealth management industry, as well as the MNCs and local companies here can all take advantage of the event to derive benefits for their clients and their businesses, creating more economic spinoffs.

Tourism Contribution to Economy

Already, there is an air of anticipation and excitement surrounding the Singapore street race, and possibly the first night race on the F1 race calendar. The Singapore Grand Prix follows the unveiling of two other mega tourism projects in Singapore, the Integrated Resorts at MarinaBay and Sentosa. The two IRs are each expected to bring in about S$2.7 billion, or approximately 0.8%, in value-Add contribution to Singapore's Gross Domestic Product (GDP). They are also expected to generate more than 50,000 jobs combined throughout the economy by 2015.

These are all part of our efforts to grow tourism into a significant contributor to Singapore’s economy. By the year 2015, Singapore hopes to attract 17 million in visitor arrivals and S$30 billion in tourism receipts.

Tourism Performance

We are moving in the right direction and the tourist numbers attest to this. The tourism sector has been riding a new wave in the last few years.After our record-breaking 9.7 million visitor arrivals last year, visitor arrival figures for this year have also been on an upward trajectory, breaking new records every month.In July, for example, we saw 951,000 visitors, an increase of 4 per cent over last July.This is the highest number of visitors we have ever received in any single month. From January to July, a total of 5.883 million people visited Singapore – a 5 per cent increase over the same period last year.We are on our way to meeting our target of 10.2 million visitors this year, which, if realised, will be yet another record for us.The performance in our hotel sector mirrors the growth in visitors.The Average Occupancy Rate hit a healthy 91 per cent in July and the Average Room Rate hit $210 in June, which is the highest monthly average room rate ever recorded.

Global City with Diverse Offerings

The two IRs and the F1 race will help to further boost our tourism numbers as well as position Singapore as a global city with buzz and vibrancy, brimming with diverse entertainment and lifestyle options.We will not rest on our laurels.To continue the momentum, we need to continue to look out for new ideas and develop exciting projects that will strengthen our destination appeal to an increasingly sophisticated global traveler. Our product offerings must be refreshed continually and new options rolled out in order that we remain a choice destination. One of these is the recently launched Uniquely Singapore Weekends initiative by the Singapore Tourism Board to promote Singapore as a fun and energetic weekend getaway destination offering a variety of entertainment and lifestyle options.

Next year, we will see the opening of the iconic Singapore Flyer, the inaugural F1 Singapore Grand Prix, the opening of properties such as the Capella Singapore on Sentosa and the staging of the second Singapore Biennale. Indeed, even as we continue the search for new product offerings and new attractions to entice visitors to come, and hopefully, to come more than once, we must also ensure that we maintain the high quality of our existing attractions. Soon, works will begin to enhance the visitor experience along Singapore’s premier shopping street, Orchard Road, as well as along the historic SingaporeRiver, with new street furniture, state-of-the-art lighting and regular events scheduled to inject new buzz into these precincts, especially after the sun sets. These will go some way in ensuring thatSingaporeoffers ourvisitors uniquely personal and different experiences.

Hosting of F1

For the Singapore Grand Prix, we have about a year from now until the race.The infrastructure required, however, needs to be ready in about nine months’ time. The PitBuilding that will rise from this piece of land we now stand on will be one significant milestone that all will watch closely.

But besides the infrastructure, what will also be watched closely will be the softer aspects as well – how Singapore plays host to this international event.And for us to succeed on that front, we will need the support of not just those directly involved in organising the race, but the larger business community as well, our service staff and in fact, every Singaporean, to ignite the buzz in Singapore for this race. We look forward to next September, and the sound of race engines roaring to life and filling our city centre with much excitement for the first time. We must be prepared for the global audience that will see our beautiful city skyline right in their living rooms. I know you share my excitement. Together, we will make the Singapore Grand Prix a success.

Thank you.
 
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